Narrow trading ranges are likely to redevelop early Monday morning due to limited volume as traders move back into the market following the weekend break. Recent concern of pressure in lean hog trade is adding to the market softness.
Cattle: Steady Higher Futures: Mixed Live Equiv: $141.30 -0.93*
Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 75.54 -0.44**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Activity on Monday morning in the cash cattle market will be undeveloped with showlist distribution and inventory-taking consuming the time and energy of both packers and feedlot managers. Some underlying support is expected going into the week following the price gains in Friday’s cash trade. But packers are proceeding with caution in order to not get too far ahead of themselves, as they will try to get some additional direction from beef values through the next couple of days.
Live cattle trade is expected to bring about increased market shifts early in the week with the firming market tone through most of the day Friday expected to bring back buyer interest, even though concerns of pressure in feeder cattle trade could limit additional market shifts.